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Business, 30.10.2019 06:31 Flameking1223

Consider the following ricardian model with two countries and two goods, books and movies. singapore has 200 units of labor available; the unit labor requirement for a book is 2 and 5 for a movie. hong kong has 100 units of labor available; the unit labor requirement for a book is 10 and 4 for a movie. note: this question is primarily graphical. draw big graphs so it is clear what you mean. every line you draw should be labeled and have it's inter- cepts labeled. a) draw the ppf for singapore and hong kong on two different graphs. place qbook on the y axes. label them their country specific ppf for the remainder of the question, assume the world price of books is $2 and the world price of movies if $1. b) add the free trade ppf for each country to your graphs in part a). label them ppfworld- for the remainder of the question, we will drop the assumption that it is costless to transport books. specifically, assume it costs $0.5 to transport a book (e. g. it would cost $1 to transfer 2 books). it does not cost anything to transport movies. the transport costs are paid by the exporting country, and the world prices do not change. c) add the free trade with transportation costs ppf for each country to your graphs in part a). label them ppfw. t- d) what would happen if the $0.5 cost applied to exporting movies? how many movies would each country export? note: you don't need a graph for this explain in words.

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Consider the following ricardian model with two countries and two goods, books and movies. singapore...
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